Rupee Slumps 69 Paise Against The Dollar As Russia-Ukraine Tensions Mount

The rupee plunged 69 paise to 75.25 against the US dollar as tensions mounted between Russia and Ukraine. The rupee is expected to continue to weaken should tensions mount.

An escalation of the current situation will trigger a rally in USDINR pair towards 75.25 and targets of 75.72 will open up above this, according to the Currency Desk of Emkay Global Financial Services.

Meanwhile, the benchmark indices came crashing down in trade as Russian President Vladimir Putin, in an early Thursday morning address in Moscow, announced that Russia would launch a military action in Ukraine. NBC News reported that explosions were heard in Kyiv, the Ukrainian capital.

The currency market like the stock market is likely to be exceedingly volatile. For India, which imports 70% of its crude prices, gets hit by a double whammy of rising crude prices and falling rupee against the dollar.